Clicky

On Watch for Consecutive Divergent Highs In GLD & GDX

This test of the 5/2 highs (or any relatively minor break above) in GLD (gold ETF) marks (or will mark) the 2nd consecutive divergence high, or double negative divergence in GLD unless prices breakout & continue much higher. I'll be watching the price action closely in the next few sessions to see if gold can breakout & burn through these divergences by continuing higher (thereby putting in higher highs in the RSI & MACD) or whether GLD prices fail here on the test of the May 2nd highs or on any minor breakout above as that might offer an objective short entry on GLD and/or GDX.

GLD daily June 15th

GLD daily June 15th

Still awaiting a bearish crossover on the MACD to confirm these back-to-back negative divergences on GDX & another correction in the mining stocks.

GDX daily June 15th

GDX daily June 15th

1+
Jun 15, 2016 3:01pm|Categories: Gold & Commodities|Tags: , , , |5 Comments

5 Comments

  1. schooner June 15, 2016 3:04 pm at 3:04 pm

    Randy, thanks for the charts. Per my post on Brexit a few minutes ago, I think gold direction will be determined by the vote in a week.

    0

    • rsotc June 15, 2016 3:32 pm at 3:32 pm

      schooner, I’d have to agree with that or at the very least, the initial knee-jerk reaction to the Brexit vote is likely to be quite dramatic.

      0

  2. snp June 15, 2016 3:20 pm at 3:20 pm

    GLD=gold loves divergence

    0

    • rsotc June 15, 2016 3:28 pm at 3:28 pm

      That is funny although GLD didn’t care too much for that last divergent high on May 2nd which was immediately followed by the biggest drop in gold so far in 2016. Maybe this time will be different. With only 35 minutes left in the trading session, GLD has a very impressive bullish engulfing candlestick ready to be finalized. As such, the torch has been passed to the gold bugs so let’s see whether they can take it & run or if the fumble the hand-off & drop it.

      0

  3. snp June 15, 2016 4:22 pm at 4:22 pm

    gdx has taken out the weekly 200 ma, but the first tag was a good short. I think the best place to short GLD would be the same, a tag of the 200wma, around 126.40

    0

Comments are closed.